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What does it mean to be a shareholder?


As explained by Investopedia, a Forbes Media Company, “stock” is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you are referring to shares, equity, or stock, it all means the same thing. Being an owner of, or holding, a company’s stock means that you are one of many owners, or shareholders, of a company, and as such, you have a claim to everything the company owns. As an owner, you are entitled to your share of the company’s earnings as well as any voting rights attached to the stock.

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